Value of Molten Ventures' holding in Revolut rises significantly

21st Aug 2024 07:18

(Sharecast News) - Molten Ventures, a prominent venture capital firm known for investing in high-growth digital technology companies, announced a substantial increase in the valuation of its holding in fintech company Revolut on Wednesday.

The FTSE 250 company said it followed a recent secondary share sale by Revolut, which valued the company at $45bn.

Based on the new valuation, Molten Ventures' stake in Revolut was now estimated at around £160m, marking a significant uplift of around £95m from the previous gross carrying value of £65m, recorded as of 31 March.

The impact on Molten Ventures' net asset value was yet to be adjusted for factors including carried interest, potential further valuation changes, and corporation tax on capital gains, which currently stands at 25%.

It said the adjustments would be finalised and reflected in its interim results for the period ending 30 September.

Molten Ventures said it would provide additional updates in a trading update ahead of the interim results.

"Revolut has recently gone from strength to strength," said Molten chief executive officer Martin Davis.

"It is great to see the business able to reward its people for their contribution to its growth, and at a valuation which provides significant upside to our own.

This shows the benefit to our investors of the prudent approach we take to net asset value, and we look forward to updating on the precise uplift in more detail when we next report results."

At 0851 BST, shares in Molten Ventures were up 2.28% at 404p.

Reporting by Josh White for Sharecast.com.